Submitted by: Submitted by salmelahi
Views: 10
Words: 1397
Pages: 6
Category: Business and Industry
Date Submitted: 03/19/2016 10:38 PM
Business Analysis:
Ford is one of the largest automobile companies in the world that was founded in 1903 by Hennery Ford. Ford has more than 90 plants in more than 23 countries and has more than 174,000 employees around the world. These plants have different tasks such as building transmission, assembly, casting & forging, stamping, and engines. Ford had major financial issues in 2007-2008 and incurred losses of $14.7 billion. This was a tough year for automobile industry where companies like General Motors and Chrysler filed for bankruptcy. However, Ford was able to survive after new management took over and laying off 133,00 employees they expected to breakeven by 2011. However, they made $20.2 billion in profit in that year.
SWOT Analysis:
Strength:
1- Ford has a very strong position in the US market. It’s the second largest company in the US with 15% market share right after GM which has 17% market share.
2- Ford enjoys a good reputation for its vehicles and a strong image and brand name.
3- Ford has introduced Econetic Technology, which allows its cars to produce CO2 output as much as Toyota Prius without hybrid drivetrain. This was a very important factor in Ford success in the last couple of years.
4- Ford has a very efficient management that was able to turn things around during the crisis in 2008.
Weakness:
1- Ford has a high structural cost for its vehicles, they think of these costs as a direct investment in future growth and revenue. However, in this very competitive market these costs can erode profits.
2- The US Environmental Protection Agency has sued Ford for violation of Clean Air Act. While many automobile companies have been sued for the same reason, Ford is still behind when it comes to reduction of emission for certain models.
3- Ford is focusing on pickup trucks sales and blamed for not trying to attract younger generation by offering cars that fits this segment.
Opportunities:
1- Ford Has...